Tabreed approves 5 fils interim dividend after H1 cash flow rises 40%
Operating cash flow rose 40% to Dh632m while connected capacity increased 15%
Dubai: Tabreed has approved an interim cash dividend of 5 fils per share for the first half of 2026 after net operating cash flows climbed 40% year-on-year to Dh632 million, giving shareholders a second consecutive year of interim payouts.
National Central Cooling Company, known as Tabreed, reported revenue of Dh1.13 billion for the six months ended June 30, up 2% from a year earlier, while net profit stood at Dh192 million.
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The interim dividend represents 74% of first-half net profit and follows Tabreed’s first interim payout in 2025. The company said the payment reflects its approach to balancing shareholder returns with funding for future expansion.
Capacity climbs 15%
Connected cooling capacity increased 15% year-on-year to 1.58 million refrigeration tons by the end of June, helped by portfolio expansion and additional capacity from completed projects.
Organic capacity increased by 4,500 refrigeration tons during the period, while cooling consumption volumes reached one billion refrigeration ton hours. Tabreed attributed consumption levels during the first half to milder weather compared with the same period last year.
Tabreed’s essential role in this nation’s utilities infrastructure remains unassailable. And the company’s operating performance during the first half of 2026 clearly demonstrates the continuing strength of its core business, as well as the vitality of district cooling within the markets we serve, bringing long term revenue visibility and sustainable returns for shareholders.Dr Bakheet Al Katheeri, Chairman of Tabreed
Tabreed’s recent expansion included the acquisition of Abu Dhabi’s PAL Cooling with CVC DIF, alongside continued investment in organic growth projects.
Financing costs weigh on profit
EBITDA reached Dh615 million during the first half, giving Tabreed a margin of 55%.
The company said its Dh192 million net profit reflected a more normalised expense base, higher financing costs following its 2025 refinancing at prevailing market rates and additional interest expenses linked to acquisition-related debt used to fund growth investments.
Cash generation strengthened despite those costs, with net operating cash flows rising 40% to Dh632 million. Tabreed said the funds continue to support new investments, balance sheet management and shareholder returns.
Net debt to EBITDA improved to 4.57 times by the end of June, while the company maintained investment-grade credit ratings from Moody’s and Fitch.
Tabreed had Dh661 million in cash at the end of the first half and access to an undrawn Dh1.2 billion Green Revolving Credit Facility, with no near-term debt maturities.
UAE remains key growth market
Tabreed said it will continue to focus on its core UAE market during the remainder of 2026, with a pipeline of potential projects being managed in line with customer delivery schedules.
Timelines for some customer projects continue to follow activity in the wider real estate market, while the company said its underlying project pipeline remains healthy.
Al Katheeri said, “As we continue to integrate these investments and pursue selective growth opportunities, we remain committed to prudent capital allocation and sustainable long-term value for our stakeholders. Tabreed continues to surpass itself, providing comfort to millions while conserving precious energy and other resources in its relentless pursuit of operational excellence.”
